You will be hard pressed to find 3 year CD rates yielding above the 3.0% APY mark (especially if you are looking for certificates of deposits available nationwide). The top 36 month CD rates in which we have come across over the course of November have come from either credit unions or national banks.
The best of them comes from Flagstar bank which has a three year CD yielding 3.0% APY. You must deposit a minimum of at least $500 to receive this interest rate. Flagstar’s current rates on their CD’s take an interesting yet profitable jump from the 30 month to 36 month term. Their 30 month CD only provides yields of 2.16% APY and their 36 month CD provides a much more lucrative 3.0% APY. One thing to note is that you must type in your zip code before being provided with their interest rates. After testing a number of zip codes in major cities throughout the country we have found that the 3 year CD yielding 3.0% APY is fairly common.
The next best interest rate is also a 3 year CD with a 3.0% return, however it comes from Alliant Credit Union which has some fairly strict requirements for eligibility. Currently you can invest in a 3 year CD with the 3.0% return if (A) you deposit atleast $50,000 and (B) you fit the following requirements:
- live or work in the following Chicagoland communities: Arlington Heights, Bensenville, Des Plaines, Elk Grove, Elmhurst, Franklin Park, Harwood Heights, Itasca, Mount Prospect, Northlake, Niles, Norridge, Park Ridge, Prospect Heights, River Grove, Rolling Meadows, Rosemont, Schiller Park, Wood Dale and Chicago O’Hare Airport property
- Any person related by blood or law to an existing member
- Domestic partners of unmarried members
If you cannot deposit the $25,000 minimum you will still earn a respectable 2.85% APY. If you happen to know of a better 3 year CD rate, please share by leaving a comment!
A long term CD – one at least 3 years or longer – is likely the wisest certificate of deposit to purchase at this time. Because interest rates are scheduled to continue their decline, locking in a long term deposit with a still respectable APY is a great way to hedge against future falling rates. The FED has made it fairly clear that key rates (and subsequently savings rates) are going to remain at historic lows until we have fully climbed out of our recession.